State Treasurer Clint Zweifel and Rep. Don Wells last week called for the permanent extension of the Missouri Linked Deposit Program to ensure farmers and small business owners continue to have access to the effective and fiscally responsible economic development tool.
The loan program has lent nearly $500 million and impacted nearly 8,000 jobs and farmers in the past two years.
“We need to be focused on efforts to create jobs and invest in farms. The Missouri Linked Deposit Program has proven to be an excellent tool in doing both,” Wells said. “This loan program provides low-interest capital statewide and has real local impact — my district alone has received $5.5 million in just two years. Permanently extending this economic development tool will ensure access for our small business owners and farmers.”
House Bill 109 removes the Missouri Linked Deposit Program’s expiration date set for Dec. 31, 2015. Loans which are approved yearly for up to five years are available with five-year fixed rates. The permanent extension provides certainty to lenders that the highly popular five-year fixed rates will continue be available.
“The Missouri Linked Deposit Program works and in two years it has provided half a billion dollars in low-interest capital across the state,” Zweifel said. “My administration has ensured Missourians get what they expect — a return on investment in a fiscally responsible manner. We have cut red tape, ensured that taxpayers never take credit risk and expanded loan eligibility impacting nearly 8,000 jobs and farmers throughout our state. Providing certainty to the market place by permanently extending this program is essential.”
In 2009, Zweifel’s jobs and economic development package expanded eligibility for the Missouri Linked Deposit Program. The single largest expansion of the program allows business with up to 99 employees to qualify; previously a business could have no more than 24 employees. The package passed the Senate and House unanimously and was signed by Gov. Jay Nixon.
Since January 2009, the loan program has saved Missourians an estimated $9.1 million in annual interest.
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